How does OTC crypto trading work and what are the advantages?

3 answers

• Houmann AnkersenAug 29, 2024 · a year ago
  Sure! OTC crypto trading is a method of buying and selling cryptocurrencies directly between two parties, without the need for a centralized exchange. It involves large trades that are not easily executed on regular exchanges due to their size. OTC trading offers several advantages, such as increased privacy, reduced price volatility, and faster settlement times compared to regular exchange trading. It allows institutional investors and high-net-worth individuals to trade large volumes without impacting the market. Additionally, OTC trading provides access to a wider range of cryptocurrencies and allows for customized trading strategies. Overall, OTC crypto trading offers flexibility and convenience for large-scale traders.
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• peeyus hr20 sainiNov 16, 2020 · 5 years ago
  OTC crypto trading is like a VIP lounge for big players in the cryptocurrency market. Instead of trading on regular exchanges, they can make large trades directly with each other. This method offers advantages such as better privacy, as trades are not visible on public order books, and reduced price volatility, as large trades can cause significant price fluctuations on regular exchanges. OTC trading also allows for faster settlement times, as transactions can be settled off-chain. It's a preferred choice for institutional investors and high-net-worth individuals who want to execute large trades without impacting the market. Overall, OTC crypto trading provides a more tailored and exclusive trading experience.
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• Antonio ManganielloJan 19, 2025 · a year ago
  BYDFi, as a leading digital asset exchange, offers OTC crypto trading services. OTC trading works differently from regular exchange trading. Instead of placing orders on an order book, buyers and sellers negotiate directly with each other or with a broker. This method allows for larger trades and provides more privacy. The advantages of OTC trading include reduced slippage, as trades are not executed on an open market, and faster settlement times. It's a popular choice for institutional investors and individuals who want to trade large volumes of cryptocurrencies. OTC trading also allows for customized trading strategies and access to a wider range of cryptocurrencies. Overall, OTC crypto trading offers unique advantages for those who require specialized trading services.
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